New tax credits for 2009 and changes to existing tax credits

[Clair]

When installing thermal insulation materials on inner/outer walls and roofs :

• tax credit from 01/01/09: 25% of installation costs (not materials cost) or 40%, if the work is done within 2 years of the acquisition of a property completed before 01/01/77.

When undertaking a property energy performance rating:

• tax credit from 01/01/09: 50%

Heat pump and woodburners (including hot water production from wood):

• tax credit from 01/01/09: 40% (instead of 50% currently)
• tax credit from 01/01/10: 25% or or 40%, if the work is done within 2 years of the acquisition of a property completed before 01/01/77.

from 01/01/09, no more tax credit for chaudières à basse température or pompes à chaleur air/air.

(hope this makes sense)

Furthermore, the tax credit ceilings remain at:

• €8 000 for a single person household
• €16 000 for a couple

However, the ceilings will now take into account the costs incurred over 5 consecutive years between 01/01/05 and 31/12/12.

[Scooby]

Would have been nice to have had a rebate on the cost instead of a tax credit - for all the non tax payers...

[suein56]

[quote user="Scooby"]Would have been nice to have had a rebate on the cost instead of a tax credit - for all the non tax payers...

[/quote]

Resident non tax payers receive a rebate by cheque.

Sue

[giantpanda]

Hi!

One point which also be interesting for some.

They now also apply to rentals under certain conditions.

See here:exemple du crédit d'impôt étendu au bailleur

http://www.lesechos.fr/patrimoine/impots/300296468.htm

Yours,

giantpanda

PS. To be clear : air pumps Air/Air are no longer in the list.

[lavorgere]

Could you clarify for me please Clair ?

We have just started the renovation of a very old property which we bought in 2003 - does this mean that we will only get a 25% credit for a heat pump etc after 01.01.10 ? We may have to bring some work forward in that case !

Thank you - your posts and links are always so helpful.

[Vanman]

Clair

thanks for this post - it's very helpful. Could you just clarify two points.

Are these the tax new credits for work invoiced in 2009 (ie they affect the tax return for 2009 income which we'll submit in 2010), or are the ones on the return to be made in 2009?

The rolling five-year ceiling. Does this mean that if you had already hit the ceiling with a one-off spend in 2005, you can claim again in 2010? i.e the slate is wiped clean after five years?

[Glyn]

Clair,

Does this include double glazing?

Is this a change? I thought that the 25% used to be on the materials cost?

[Rozmum]

Does anyone know if its possible to claim tax credits restrospectively?  ie We had some work done - insulation of inner and outer walls - in 2005 which was billed in 2006.  We didn't put this on our tax form then as we were ignorant about such things.  I wonder if we could claim for that work this year?

Many thanks   

[Clair]

[quote user="lavorgere"]We have just started the renovation of a very old property which we bought in 2003 - does this mean that we will only get a 25% credit for a heat pump etc after 01.01.10 ? We may have to bring some work forward in that case !

[/quote]

The way I read it, this would indeed be the case.

PS: I am not a specialist! This information is obtained via the specialist magazine "Le Particulier" dated Feb. 09

[Clair]

[quote user="Vanman"]Are these the tax new credits for work invoiced in 2009 (ie they affect the tax return for 2009 income which we'll submit in 2010), or are the ones on the return to be made in 2009?[/quote]Yes.

[quote user="Vanman"]The rolling five-year ceiling. Does this mean that if you had already hit the ceiling with a one-off spend in 2005, you can claim again in 2010? i.e the slate is wiped clean after five years?[/quote] As I read it, yes, that seems to be the case.

See disclaimer above [:)]

[Clair]

[quote user="Glyn"]Does this include double glazing?

Is this a change?

I thought that the 25% used to be on the materials cost?[/quote]

As far as I am aware, the tax credit on double-glazing has not changed.

The 25% is a NEW/DIFFERENT tax credit applied to the installation of thermal insulation of walls and roofs.

[Clair]

[quote user="Rozmum"]

Does anyone know if its possible to claim tax credits restrospectively?  ie We had some work done - insulation of inner and outer walls - in 2005 which was billed in 2006.  We didn't put this on our tax form then as we were ignorant about such things.  I wonder if we could claim for that work this year?

Many thanks   

[/quote]

Your tax office will be able to tell you what the time limit is.

I don't think inner walls will count towards it.

More details here: http://www.industrie.gouv.fr/energie/developp/econo/textes/credit-impot-2005.htm